Many Irish consumers have low understanding of credit and borrowing, new research shows.
Bank of Ireland’s Financial Wellbeing Index reveals that consumers answered almost half of questions incorrectly in a financial literacy test.
This included topics such as personal loans, overdrafts and credit cards.
While over 60% knew the effect of interest on their monthly loan payments, just 19% understood how to limit the interest paid on a credit card.
In order to help customers with decisions around borrowing, Bank of Ireland has introduced a new online calculator.
It aims to help customers understand the products available and choose the right product based on their specific needs.
“Making the right decisions and choices has a critical impact on our financial wellbeing over the course of our lives,” said Susan Russell, CEO, Retail Ireland, Bank of Ireland.
“Those that are more knowledgeable around financial matters are better placed to make sound financial decisions.”
